Corn prices reached a record today on concerns the continuing wet weather in the midwest and southern United States will slow down planting, increasing the possibility that supplies could be low.
Acreage for corn is already projected to be about 8 percent lower than last year's planting, adding to the concern on inventory.
"We're going to start trading the weather here," said Jason Ward, analyst with Northstar Commodity in Minneapolis. "The rainy weekend means that some corn growers may switch acres over to beans, and it also raises the risk that there will be lower corn yields."
Corn surged by 11.75 cents to finish at $5.9575 a bushel on the CBOT, after breaking a record at $5.99 a bushel earlier in the day.
If the wet weather continues, planters may drop corn planting altogether and sow beans instead. Corn prices should rise steadily on a supply and demand basis.
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